OREANDA-NEWS. October 3, 2011. Ford Motor Company [NYSE: F] and Sollers OJSC announced that Ford Sollers, their 50-50 joint venture in Russia, has started operations.

Alan Mulally, president and CEO, Ford Motor Company, and Vadim Shvetsov, general director, Sollers OJSC, announced the formal commencement of the joint venture in Moscow today, just eight months after the two companies signed the initial memorandum of agreement. 

“The Ford Sollers joint venture will help us accelerate our plan to offer a full line-up of world-class vehicles to Russian customers,” said Alan Mulally, Ford president and CEO, speaking in Moscow at today's announcement event. “This partnership marks another important step in our One Ford plan to profitably grow around the world.”

Added Vadim Shvestov, general director of Sollers: “For Sollers, this is an historic event. Our strategy has been to develop a partnership with a world-class automotive player that can offer a full range of vehicles suitable for the Russian market.  Ford is the partner we have been looking for to support this vision.

“We are certain this project will have a valuable impact on the Russian economy overall, and will further strengthen the Ford brand's position in the global auto industry.”

Mulally and Shvestov used the occasion to announce that Ford Sollers will be producing the iconic Ford Explorer in the Republic of Tatarstan in Russia next year. The all-new version of the Explorer – with major improvements in power with an output of 294PS, refinement and fuel economy – has been a popular seller since it was introduced in North America last year.  

The Ford Explorer joins the new Ford Focus and Ford Mondeo, which are currently built in St. Petersburg, and the Ford Transit medium commercial vehicle, which also will be built in Tatarstan from 2012.

In addition to vehicle production, Ford Sollers will manufacture engines; operate a stamping facility that will provide a higher level of local parts content for Ford vehicles built in Russia; and establish research and development activities.  It also will be responsible for the import and distribution of all Ford brand products, parts and accessories in Russia.

Today's announcement follows the recent confirmation that Ford Sollers had secured a long-term financing loan of 36 billion roubles from Russia's Vnesheconombank to help develop the Ford Sollers business.

The new Ford Sollers business will be headquartered in Khimki, Moscow oblast, and will have three production sites; one in the Leningrad Oblast, and two in Tatarstan.

The Ford Sollers executive board also was announced at the inaugural event in Moscow. Ted Cannis is appointed president and CEO of Ford Sollers. Cannis has extensive experience as a leader at Ford around the world, including posts in the United States and South America. He was previously the deputy general manager at Ford Otosan, Ford’s joint venture in Turkey.

“I'm delighted to be leading the Ford Sollers team,” Cannis said. “We have a talented and experienced management team drawn from Ford’s global operations and Sollers, and an extremely capable work force in St. Petersburg, Tatarstan, and Moscow.

“Russia is set to become Europe's largest market for new vehicles by mid-decade. This provides Ford Sollers, the Ford brand and our great dealer network with a huge growth opportunity. All of us at Ford Sollers will be dedicated to doing the very best for Ford customers in Russia and for our shareholders.”

Adil Shirinov is appointed executive director and chief operating officer of Ford Sollers.  He was previously a commercial director of Sollers and general director of Sollers-Isuzu, where he was responsible for purchasing and localization for all the brands manufactured under license by Sollers. In addition, Shirinov was in charge of the production of commercial vehicles at the Sollers plant in Elabuga.